Now, you can withdraw up to 90 percent of EPF to buy homes, pay EMIs
Planning to buy a home? Is finance a concern? Not anymore if you are a subscriber of the Employees Provident Fund Organisation. The labour ministry has made it possible for over four crore subscribers of EPFO to withdraw up to 90 percent of accumulations to buy homes, make down payments and pay EMIs.
"An amendment made by the EPFO by inserting a new paragraph, 68 BD, to the Employees' Provident Funds Scheme, 1952, will enable a subscriber to make down payment to buy homes and pay EMIs through the EPF account," a senior official said. Th labour ministry has issued a notification for the purpose and the scheme now stands amended.
Key features of the new provision
Under the new amendment, an EPF subscriber who is a member of a co-operative or housing society with at least 10 members can withdraw up to 90 per cent from the fund for the purchase of a dwelling house or flat or construction of a dwelling house and acquisition of a site.
The scheme also says that monthly instalments in the form of EMIs or repayments of any outstanding payment or interest may also be paid from the amount. The payments can be made to the government, housing agency, primary lending agency and the banks concerned.
While the move is aimed at making housing feasible for the common man, the withdrawal facility from the PF account will be available to only those PF members who fulfil the conditions prescribed. A member applying under this window should have contributed to the fund for at least a minimum period of three years. The facility can be availed by a member only once in his or her lifetime. The scheme will be applicable only to those subscribers who together with their subscriber spouse have at least Rs 20,000 in their accounts.